Is Building Exempt Due to Substantial Rehab?

February 26, 2019

LVT Number: #29951

Landlord sued to evict tenant and claimed that tenant's building was exempt from rent stabilization due to substantial rehabilitation. Landlord asked the court to rule on the case without a trial. The court ruled against landlord. In order to qualify for a substantial rehabilitation exemption from rent regulation, DHCR Operational Bulletin 95-2 required landlords to prove that 75 percent of building systems had been replaced. Rent Stabilization Code Section 2520.11(e) authorized the DHCR to set forth these criteria in an operational bulletin.

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